Center-Invest Bank Syndicated Loan

Location:

Russia

Project number:

37039

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

15 Jun 2006

Status:

Completed

PSD disclosed:

15 May 2006

Project Description

The proposed project envisages a first-time international syndicated loan to Center Invest Bank in the total amount of USD30 million (USD10 million in A-Loan for EBRD and USD20 million B-Loan syndicated to commercial banks).

The loan will be used for on-lending to small and medium-sized enterprises and individuals in the South of Russia – the Center Invest’s principal client base – and will support the bank’s growth strategy through improved access to international capital markets and longer-term funding.

 

Transition Impact

Through A/B-Loan structure EBRD will facilitate Center Invest’s first-time introduction to the international syndicated loan market and promote wider access to different type of investors in the future.

The Client will benefit from diversification and stability of funding as well as from lengthening of maturities. This will increase the bank’s capacity to grow lending to small and medium-sized companies and retail customers and further strengthen its balance sheet.

The Project will overall enhance Center Invest’s competitiveness against large state-owned and private banks in the region of its operation and promote greater access to financial services by businesses and individuals in the South of Russia.

 

The Client

Center Invest Bank is a leading regional universal commercial bank based in Rostov-on-Don catering to small and medium-sized businesses and individuals through a wide branch network in the South of Russia.

EBRD Finance

USD 45,000,000, with A-loan of USD 15,000,000, and B-loan of USD 30,000,000.

 

Project Cost

USD30 million (EUR24 million).

Environmental Impact

Center Invest will be required to apply EBRD’s Environmental Procedures for Local Banks to all commercial lending activities including sub-loans financed out of the proceeds of the syndicated loan, and to submit annual environmental reports to the Bank.

Technical Cooperation

Center Invest is working with ING Bank as consultants within the framework of Russian Regional Bank Credit Strengthening and Institutional Building Program funded through EU IPF Program.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

 

Company Contact

Ms. Grigory Chorayan, Member of the Management Board
Bank Center-Invest
62, prospect Sokolova,
Rostov-on-Don, Russia, 344010;

Tel. + 7 8632 675 833
Fax +7 8632 640 640

 

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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